For this week's assignment, you are required to read the lecture notes and review the supporting resources, then complete the below financial statements from the information provided. Please support your analysis with at least 2 references. All assignments must be in the APA format. Scenario 1: The following are balance sheet accounts for ABC Event Company for end of year (December 31, 20XX). Please note that: (the company paid $2, 500 in cash for the equipment and financed the remaining $6,500 with a loan from the bank.) Accounts payable $ 6, 500 Accounts receivable 4, 800 Cash 1,500 Equipment 9,000 Equipment Software 500 Notes payable 6, 500 Owner's equity? Required: Find the missing account balance. Prepare a simplified balance sheet from the information. Consider the ABC Event Company scenario in the lecture notes. Provide a brief description of your analysis. Scenario 2: Income Statement for ABC Event Company ABC Event Company's food and beverage costs for the year were $35,000. Labor costs for part time and full-time employees were $65, 000. Catering services generated $120,000. Other operating costs came to $12, 500. Required: Prepare an income statement for year-end December 31, 20XX for ABC Event Company according to our lecture notes. Provide a brief description of your analysis. Scenario 3: Prepare a Statement of Cash Flows using information given in the balance sheet and income statement. Required: Calculate the total cash inflows, cash outflows, and increase amount in cash for ABC Event Company. Prepare a statement of cash flows for year-end December 31, 20XX. Consider the ABC Event Company scenario in the lecture notes. Provide a brief description of your analysis.. Assume $2,800 as cash invested by owner
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
For this week's assignment, you are required to read the lecture notes and review the supporting resources, then complete the below financial statements from the information provided. Please support your analysis with at least 2 references. All assignments must be in the APA format. Scenario 1: The following are
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